GBP/JPY Price Forecast – Pound Continues to Levitate in Quiet Session

The British pound has gone back and forth against the Japanese yen at elevated levels during the trading session on Friday, as the jobs number in America came out, and of course the Good Friday holiday would be plenty of reasons why the market would be very quiet. We are extraordinarily elevated, so I do think that we will get a pullback sooner or later but quite frankly the Japanese yen has been everybody’s favorite punching bag for a while, so it is not a huge surprise that we continue to see the ¥153 level be challenged.

GBP/JPY Video 05.04.21

To the downside, the ¥150 level should be a significant support level, but quite frankly I do not even think that we get down to that level before we turn around. That being said, if we did break down below the most recent low, the market probably goes down to the ¥145 level. In general, I think this is a situation where you are looking for dips to get long, because chasing the trade all the way appear could be a little bit dangerous. Yes, we recently had a pullback, but it was not very deep, and that does make me a bit cautious.

Nonetheless, this is a one-way trade at the moment, so if you are involved it has to be to the upside. The candlestick for the trading session on Friday was neutral, and I think that is fair considering that most people simply will not be involved in the market. As we get into next week, it will be interesting to see if we have a move right away.

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